The Bank Rout could worsen with strong US jobs data | MarketTalk: What’s up today? | Swissquote

Show notes

Thursday could’ve been a calm trading session. Especially given that after a deluge of strong economic figures concerning inflation and jobs, the little uptick in the US weekly jobless claims to above 200’000 for the first time since January – and which sent the US short-term yields tumbling - could’ve given some piece of mind to investors and lead to a minor correction in equities before today’s all-important US jobs figures.
But, no.
A severe rout in banking stocks spoiled what could’ve been a calm session on Thursday. Silicon Valley Bank’s 60% plunge due to difficulties following sharp rise in interest rates fueled worries across the banking sector.
And things could get worse before they get better.
Today, the US jobs data is in focus. A strong set of figures could cement the expectation of 50bp hike from the Fed later this month and further weigh on equity valuations.
Elsewhere, the Bank of Japan (BoJ) kept its policy unchanged at Mr. Kuroda’s last meeting, the yen fell against the dollar. But the USD will be remain seated at the driver seat until the weekly closing bell as all the attention will be on the US jobs data!
Listen to find out more!